Western Europe
Revenue
Operating profit
Heineken volume
in premium segment
Regional beer volume
20. Regional review
Heineken is Western Europe's leading brewer and the region is the biggest
contributor to Group profitability thanks to the strong brand portfolio.
Heineken is Europe's number one beer and Amstel is Europe's third.
'We are working to improve organic
growth by bolstering our winning
portfolios and improving efficiency
across the region through a more
integrated approach. Our top
priority is restoring growth to beer
consumption by creating more
opportunities for consumers
to enjoy Heineken responsibly."
Regional beer volume
In millions of hectolitres
2001 I
2002 I
2003 I
2004 I
2005 I
I 35.5
33.9
36.6
32.5
32.2
Didier Debrosse, President Heineken Western Europe
Revenues in Western Europe were up despite the
challenging economic environment and declining
on-trade consumption, particularly in France and
the Netherlands. A positive showing in the Southern
European markets and a satisfactory price mix,
as we increased prices in most countries, increased
total revenues by 0.7 percent. Corporate expenses
are included in Western Europe.
On an organic basis, EBIT grew 0.9 percent
thanks to our focus on top-line growth, achieved
through a complete portfolio review and additional
investments in innovation and marketing. EBIT
(excluding corporate expenses) though fell due
to exceptional costs related to efficiency
improvement programmes. Cost control was
improved, generating further efficiency gains
in distribution and production.
Volumes decreased slightly in 2005 to 32.2 million
hectolitres, as pressure from the Netherlands
and France was balanced by growth in Spain and
the UK. In the first half of the year in Italy, volumes
grew slightly but weakened in the second half
following the increase in excise duties.
Fleineken brand volumes improved throughout
the year to end in positive territory, showing the
results of the work done in the second half to
€5.4 billion
€456 million
6.7 million hectolitres
32.2 million hectolitres
DraughtKeg
A highly innovative Heineken product,
which has been developed for consumers
to easily share and enjoy a quality draught
beer indoors or outdoors.
Heineken N.V. - Annual Report 2005
